Valuetronics Holdings Limited · SGX:BN2
Valuetronics — Q3 FY2019 Earnings Presentation
27 slides from Valuetronics's earnings presentation, Feb 12, 2019
Slide 1: SGX Announcement: Third Quarter Results
2019/2/12 Financial Statements and Related Announcement::Third Quarter Results Issuer & Securities Issuer/ Manager VALUETRONICS HOLDINGS LIMITED Securities VALUETRONICS HOLDINGS LIMITED - BMG9316Y1084 - BN2 Stapled Security No Announcement Details Announcement Title Financial Statements and Related
Slide 2: Q3FY19 Results Presentation
Q3FY19 Results Presentation Note: This presentation is to be read in conjunction with the announcement issued on SGXNET on 12 February 2019. 1
Slide 3: Important Notice
Important Notice This presentation contains forward-looking statements which can be identified by the context of the statement and generally arise when the Company is discussing its beliefs, estimates or expectations. Such statements may include comments on industry, business or market trends, proje
Slide 4: Corporate Profile
Corporate Profile Shareholding Bloomberg Code VALUE.SP Reuters Code VLUE.SI 25% ISIN Code BN2 Index FTSE ST Small Cap, FT ST China Issued shares (M) 434.0 Mkt cap (SG$M) (30 Jan 2019) 303.8 5% 70% Share price (SG$) (30 Jan 2019) 0.70 Average volume 3-mth ('000) 2,259 52 wk range (SG$) (30 Jan 2019)
Slide 5: Business Model
Business Model Value Add A Premier Design and Manufacturing Partner Design & Development Engaging in Customers Value Chain •Mechanical & electrical Integrated engineering Manufacturing Services •Design for manufacturing design from concept to •Design & build test mass production •SMT fixtures •Bette
Slide 6: Key Milestones
Key Milestones 1992 2002 2003 2005 2007 2008 Headquartered in Use of ROHS Adopted work cell Became Philips Listed on SGX- Became Phillips Hong Kong with equipment and management & preferred supplier Mainboard & preferred supplier manufacturing accredited with updated to for its consumer commenced fo
Slide 7: Daya Bay Facility – Bird’s-Eye View
Daya Bay Facility – Bird’s-Eye View • Land use rights acquired in 2006 • Total site area > 110,000 sq m 6
Slide 8: Customer & Product Portfolio
Customer & Product Portfolio Industrial & Commercial Consumer Electronics Electronics • Ability to accommodate customers requirement for various volume, mix and complexity • Customer base ranged from emerging enterprises in Northern American (low- volume complex custom product) to top global Multi-N
Slide 9: Industrial & Commercial Electronics
Industrial & Commercial Electronics Printers Temperature Sensing Devices Nasdaq-listed Company Unit of a NYSE-listed MNC Transaction Printer for Slot, POS & Teller Station Machines Company owned by a UK PE Fund Cold Chain Temperature Monitor for Industrial & Commercial Use Company owned by a UK PE F
Slide 10: Industrial & Commercial Electronics (Cont’d)
Industrial & Commercial Electronics (Cont’d) Communication Products Toronto-listed Company Taiwan-listed Company Company Based in North America High Precision GPS for Industrial Use 9
Slide 11: Industrial & Commercial Electronics (Cont’d)
Industrial & Commercial Electronics (Cont’d) Electronic Products for Others Automotive Industry Tier 1 Automotive System Manufacturer In-vitro Diagnostic Medical Equipment Data and media connectivity module for Testing Human Tissue Samples 10
Slide 12: Consumer Electronics
Consumer Electronics Consumer Lifestyle Products Consumer Lifestyle Division of a Dutch MNC Subsidiary of Homax Group (Wholly-owned by PE firm) PCBA for Shavers & Electric Toothbrushes for Consumer Use 15W and 40W Bug Zappers 11
Slide 13: Consumer Electronics (Cont’d)
Consumer Electronics (Cont’d) Smart Lighting with IOT Features Wireless lighting contain various LED specially chosen to produce wide range of intensities and over 16 million colours; Wirelessly controlled by mobile application 12
Slide 14: Q3FY19 Financial Highlights
Q3FY19 Financial Highlights 13
Slide 15: Financial Highlights
Financial Highlights % HK$’M15 9MFY19 9MFY18 % Change Q3FY19 Q3FY18 Change Revenue 2,149.8 2,209.7 -2.7 729.6 788.3 -7.5 Gross Profit 325.6 322.9 0.8 115.8 113.7 1.8 Gross Profit Margin 15.1% 14.6% 0.5% pt 15.9% 14.4% 1.5% pt Net other operating loss# (13.6) - NM - - - Net Profit for 153.7 157.7 -2.
Slide 16: Financial Highlights: Revenue Contribution
Financial Highlights Revenue Contribution 9MFY19 Q3FY19 40.0% 59.5% 40.5% 60.0% HK HK HK HK $1,291M $859M $435M $295M 9MFY18 Q3FY18 49.7% 49.1% 50.9% 50.3% HK HK HK HK $387M $401M $1,112M $1,098M Consumer Electronics Industrial and Commercial Electronics
Slide 17: Revenue Trend
Revenue Trend HK$’ M 2,900.0 2,853.7 2,433.3 2,429.3 2,400.0 2,274.9 2,149.8 2,209.7 1,455.6 780.0 1,952.9 956.3 1,900.0 1,111.7 1,287.8 1,290.4 1,400.0 1,128.3 900.0 1,653.3 1,473.0 1,398.1 1,098.0 987.1 400.0 824.6 859.4 -100.0 FY14 FY15 FY16 FY17 FY18 9MFY18 9MFY19 Consumer Electronics Industrial
Slide 18: Quarterly Revenue
Quarterly Revenue HK$’ M 900.0 788.3 800.0 725.7 716.2 729.6 695.7 704.0 700.0 636.1 644.0 600.0 387.2 345.3 500.0 379.2 419.3 434.4 343.9 436.8 346.0 400.0 300.0 200.0 380.4 401.1 290.1 316.5 300.1 296.9 295.2 267.2 100.0 0.0 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Consumer Electron
Slide 19: Revenue by Shipment Destination
Revenue by Shipment Destination 100% 10.0% 13.8% 11.3% 90% 80% 70% 42.7% 43.0% Europe 43.1% 60% 50% China & Asia Pacific 40% 30% North 47.3% America 43.1% 45.7% 20% 10% 0% FY17 FY18 9MFY19 18
Slide 20: Gross Profit & Net Profit Trend
Gross Profit & Net Profit Trend 140 18.0% 15.9% 15.0% 14.9% 16.0% 120 14.2% 14.4% 14.4% 14.3% 14.6% 107.1 115.8 14.0% 100 104.3 113.7 102.8 104.8 12.0% 90.6 91.8 80 8.2% 10.0% 7.0% 7.4% 6.9% 7.0% 7.3% 7.1% 8.0% 60 6.2%# 6.0% 40 59.7 58.2 49.7 44.3# 4.0% 48.7 50.8 47.0 20 43.5 2.0% 0 0.0% Q4FY17 Q1FY
Slide 21: Market Capitalisation & Net Cash Balance
Market Capitalisation & Net Cash Balance HK’M 2800 2,794.3 2600 2400 2200 2000 1800 1600 1,637.1 1,592.6 1400 1200 1000 1,109.6 1,062.0 992.7 981.7 938.6 800 857.3 808.5 754.9 752.9 600 689.3 671.1 400 505.8 200 0 FY15 FY16 FY17 FY18 Q3FY19 NAV Market Cap Net Cash balance 20
Slide 22: Earnings Per Share & Dividends Per Share
Earnings Per Share & Dividends Per Share We are committed to formal dividend policy of 30-50% payout ratio FY19: interim dividend of 5 HK cents HK cents 50.0 14.0% 48.1 45.0 11.9% 11.8% 12.0% 40.0 9.8% 9.8% 35.0 10.0% 36.8 36.9 36.4 7.7% 33.2 30.0 31.1 8.0% 29.0 25.0 7.7% 7.5% 6.1% 6.0% 6.0% 23.2 20
Slide 23: Summary of Cash Flows
Summary of Cash Flows HK$’000 9MFY19 9MFY18 Q3FY19 Q3FY18 Operating Activities Net cash generated from operating activities 224,427 45,625 2,593 44,904 Investing Activities Net cash used in investing activities (38,741) (64,184) (24,597) (2,054) Financing Activities Net cash used in financing activi
Slide 24: Balance Sheet & Key Ratios
Balance Sheet & Key Ratios Turnover HK$’M Q3FY19 FY18 Q3FY18 Q3FY19 FY18 Q3FY18 Days Working Inventories 59.6 57.7 65.1 capital Trade Inventories 397.2 385.6 448.4 72.3 74.5 86.3 Receivables Trade Trade 568.0 582.8 696.4 (74.5) (72.3) (93.5) Receivables Payables Trade (496.3) (482.9) (644.5) 57.4 59
Slide 25: Key Financial Ratios
Key Financial Ratios Q3FY19 FY18 Q3FY19 FY18 Price (SGD) # 0.66 1.08 Current ratio 1.9 1.9 NAV per share 0.45 0.41 ROE 18.5% 19.3% (SGD)* Cash per share 0.30 0.26 ROA 10.0% 10.4% (SGD)* Cash to Mkt 46% 24% PB ratio 1.47 2.61 Cap ratio # Share price as at respective period or year end date *SGD/HKD E
Slide 26: Business Outlook
Business Outlook • Mixed performance in CE and ICE segments, with a single digit revenue decline quarter on quarter • CE: Revenue decline in Q3FY19 due to weak performance in Overview the smart LED lighting products which is expected to continue to weaken in the near term • ICE: Continued double-dig
Slide 27: Business Outlook
Business Outlook • Operating in an uncertain macro-economic environment, caused by geo-political and trade tensions • While no material immediate direct economic impact at this juncture, cannot rule out any indirect and consequential Macro impact such as margin pressures or even a potential loss of
Valuetronics Holdings — Q3 FY2019 Earnings Presentation on 6ix